Hunting PLC · LSE:HTG
Hunting — Investor Day (September 2023)
14 slides from Hunting's investor day presentation, Sep 13, 2023
Slide 1: Energy Transition in a Changing World
ENERGY TRANSITION IN A CHANGING WORLD Hunting PLC Capital Markets Day, 13 September, 2023 87
Slide 2: Energy Transition – Strong technology base and critical supply chain channels
Energy Transition – Strong technology base and critical supply chain channels for high-growth geothermal and carbon capture markets Good growth in geothermal orders, for premium connection OCTG in recent years Strong legislation driving underlying markets Immediate opportunities with current product
Slide 3: Geothermal market outlook supported by numerous projects across North America, Europe and Asia Pacific
Geothermal market outlook supported by numerous projects across North America, Europe and Asia Pacific Geothermal Energy Installed geothermal capacity (MW) • Geothermal energy is a 'wells 25,000 driven' market with rapidly growing CAGR 10% 21,991 demand for higher grade material 20,245 20,838 19,532
Slide 4: Carbon Capture – strong, global legislative drivers supporting near-term revenue and profit potential
Carbon Capture – strong, global legislative drivers supporting near-term revenue and profit potential Carbon Capture Planned CCUS capacity additions by year of announced start-up • Widely considered by global authorities to be a vital part of their Net Zero strategies Over 200 Mtpa capacity is targe
Slide 5: Geothermal – high value technology required to address project complexity
Geothermal – high value technology required to address project complexity Geothermal extraction technologies are going through a step change from conventional geothermal to high-tech “unconventional geothermal” technologies providing opportunities to cross sell OCTG and perforating products Geotherm
Slide 6: Geothermal – 30% CAGR projected for OCTG to end of decade
Geothermal – 30% CAGR projected for OCTG to end of decade North America OCTG demand for geothermal wells in selected countries 16 14.62 14 12.03 12 9.88 10 000 tonnes 7.78 8 5.91 5.57 6 5.36 4.23 4 2 0 2023 2024 2025 2026 2027 2028 2029 2030 13 Cr Group 1 Group 2 Group 3 Group 4 Ni Alloy Super Duple
Slide 7: CCUS CRA OCTG – further rapid growth in the global market
CCUS CRA OCTG – further rapid growth in the global market Global OCTG demand for CCUS by grade 140,000 133,478 120,000 100,000 tonnes 80,000 74,731 68,301 63,244 60,000 40,000 34,465 28,928 31,082 20,000 19,437 0 2023 2024 2025 2026 2027 2028 2029 2030 13Cr Group 2 Group 3 S13Cr Super Duplex • CCUS
Slide 8: A low risk, high growth strategy
A low risk, high growth strategy IMAGE TO COME: ALISON TO ADVISE High-value technology offering Build supply chain partnerships • Short-term strategy to focus on OCTG and connections sales • Long-term agreements – critical CRA raw material supply • High potential for Perforating Systems technology i
Slide 9: Hunting's products ready for the market
Hunting’s products ready for the market NEW PRODUCT • API RP 5C5 CAL IV qualified • ISO/PAS12385 TWCCEP qualified Seal-Ring SEAL-LOCKTM XD Corrosion (SLXD) Barrier SEAL-LOCKTM FLUSH-SR-GL SEAL-LOCKTM FLUSH-SR- SEAL-LOCKTM XD – Perforating Systems: for CO2 GRE Lined LOD FLUSH CASING ISO/PAS 12835 TWC
Slide 10: Secured critical supply chains for CRA OCTG
Secured critical supply chains for CRA OCTG Global CRA OCTG – Suppliers by capacity Total capacity per year = 78,000 tonnes* • Current oil and gas demand for CRA is over 50k tonnes per year Abu Dhabi • Incremental demand from CCUS and Geothermal for 22 Chrome and 25 Chrome OCTG expected to exceed 25
Slide 11: Jiuli: A key partner for the next decade
Jiuli: A key partner for the next decade • 10-year Strategic Alliance Agreement signed • SEAL-LOCKTM XD Connection technology • Mill potential to increase premium connection OCTG supply by additional 20k tonnes per year • Only two competitors can match Jiuli for supply of 25 Chrome and Inconel OCTG
Slide 12: Novel technology for new markets
Novel technology for new markets • Hunting and CRA-Tubulars are joining forces to supply the North America market with Titanium Composite Tubing – corrosion resistant alternative OCTG technology • Five-year Collaboration Agreement signed – Hunting has secured exclusive manufacturing and distribution
Slide 13: Energy Transition – well positioned for high growth markets
Energy Transition – well positioned for high growth markets 01 Hunting well positioned for fast growth 02 Portfolio of OCTG technologies and 03 Strategic partnerships with Jiuli and Geothermal and CCUS markets precision manufacturing capabilities CRA-Tubulars provide critical supply provides early a
Slide 14: Glossary
Maneane 2030 PRE ENGINEERING GLOSSARY 3D Three-dimensional LNG Liquefied Natural Gas AGS Advanced Geothermal System m Million AOR Attic Oil Recovery M&A Mergers and Acquisitions APAC Asia Pacific MEA Middle East and Africa bn Billion mmbopd Millions Barrels Of Oil Per Day bopd Barrels of Oil per Day